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South Carolina requires that building contractors obtain a professional license before doing any work or bidding on any jobs. General contractors can perform residential, industrial, and commercial work.

They can install, repair, or replace highways, buildings, structures, pavings, and sewers in a variety of locations and settings. They’re also legally permitted to make improvements of any kind to property.

There are two main categories of licenses in the state: limited and unlimited contractor licenses. Limited contractors are limited to building three stories for buildings.

The state board divides contractors into five groups, all of which have different financial limits and requirements. Groups 1, 2, and 3 are for Limited Contractors. The other two — groups 4 and 5 — are for Unlimited Contractors. Contractors in groups 4 and 5 must pass the NASCLA Commercial Building Exam or the state-specific exam.

Financial limits for bids and jobs for each group are as follows:

• Group 1: $50,000
• Group 2: $200,000
• Group 3: $500,000

Contractors in group 4 have a limit of $1,500,000 per job or bid. Group 5 general contractors are considered unlimited contractors, so they have no limits on jobs or bids.

Steps for Obtaining a South Carolina Contractor License

You will need to pass various professional licensure exams before being awarded your contractor license. These include the NASCLA or the PSI limited or unlimited exams, as well as the Business Management & Law Exam.

Contractors will need to submit evidence of full-time, hands-on work experience obtained within the last five years to the board as part of the license application process.

Contractors in groups 1 and 2 will also need to submit a notarized self-prepared balance sheet showing $3,500 net worth for group 1 and $10,000 for group 2. Alternatively, those in group 1 can obtain a $7,000 surety bond. Group 2 professionals can obtain a $20,000 surety bond.

If you fall into Group 3, you’ll need to submit a GAAP financial statement that has been reviewed by a CPA. This statement needs to show $100,000 net worth for general contractors or $20,000 for mechanical. Or, you can obtain a surety bond that shows $200,000 for general or $20,000 for mechanical.

Contractors in groups 4 and 5 will need to submit a GAAP financial statement audited or reviewed by a PA or CPA that shows various net worth amounts. Alternatively, you could also obtain a surety bond of a certain amount. These amounts depend on the group to which you belong.

You must properly prepare for your exams because they are a critical part of the licensing process. Any failure to pass the tests or complete a step in the application process can result in significant delays in your journey of obtaining a license.

Prepare for South Carolina Contractor Licensure with RocketCert

For assistance preparing for your South Carolina contractor license, turn to RocketCert. RocketCert provides the most comprehensive test prep materials and online assistance with contractor licenses.

Take advantage of professional education, lifetime access to materials, and our “No Pass, No Pay” policy, and get started with RocketCert today.